To unlock the State’s true potential, there is an urgent need for structural reforms that prioritise smooth operations, accountability and stakeholder engagement
It’s time for the complex web of multiple organisations of the Punjab government to take cues from the Indian Army’s well-structured organisational hierarchy, which prioritises efficient command, control, and operational efficiency to maintain readiness. From a Havaldar leading a section, the smallest unit comprising ten soldiers, to the Chief of the Army Staff, the Army meticulously ensures cohesive functioning, distinct roles, and responsibilities, enabling the 14.55 lakh personnel to effectively fulfil defence and security roles. In contrast, the Punjab government’s organisational structure (4.15 lakh personnel, including contractual and outsourced) requires an overhaul. In total, 50 parent departments and 163 affiliated organisations, each with its administrative head, aim for seamless result-oriented operations, which are below expectations.In the current government, the Chief Minister, who also oversees the industry sector, plays a pivotal role. However, the current structure, with around 20 administrative secretaries heading 17 departments, corporations, boards, and regulatory authorities, is not conducive to growth. By fostering a culture of collaboration, we can overcome these hurdles and drive efficiency and accountability towards a single goal of industrial growth, which has the potential to exceed the current stagnation of around 3% over the past 20 years in Punjab. Unfortunately, the complexity of multiple departments cannot achieve the single target of developing a fresh entrepreneurial class in the state. Rather, numerous channels breed corruption at various levels, and coercion can easily be gauged as the Punjab government scrapped 1498 mandatory compliances for industries three years ago. Therefore, it is high time to further ease the parent department as a single unique point, focusing on the singular target of developing a fresh entrepreneurial class in the state. It’s impractical for any chief secretary to closely monitor 50 parent departments and their 163 affiliated organisations, which around 75 administrative secretaries head.
Assigning an Apex officer, preferably at an additional chief secretary (ACS) level, is crucial to overseeing and synchronising each key sector. This officer will provide guidance, ensure alignment of goals and strategies, and streamline human resources operations effectively.Industries and other key sectors, such as Education, Health, urban development, Rural Development, and Agriculture, also need help navigating the complex web of 15 parent departments and their 69 affiliated organisations, which hampers good governance in Punjab. However, these challenges also present an opportunity for policymakers to reassess and reform, driving efficient and accountable human resources and paving the way for a vibrant Punjab.Industries: In Punjab industries are overseen by over 20 administrative secretaries who manage 17 departments and affiliated organizations.
This large organizational structure, instead of collectively achieving the goal of growth, is currently engaged in assessing around 2000 compliances, posing a significant challenge for entrepreneurs. The need for an efficient and accountable administrative setup is urgent to create a conducive and thriving business environment.Initially, the Department of Punjab Industries and Commerce and its seven affiliated organisations oversaw the industrial sector.
However, three additional departments were later established – the Department of Investment Promotion, the Department of Employment Generation and Training, and the Department of Technical Education and Industrial Training – along with their ten organisations to fulfil the same objective.To fetch new investment, “Invest Punjab” was established under the Punjab Bureau of Investment Promotion (PBIP) as a single access point to streamline processes. It is claimed that this entity has been empowered to provide over 34 regulatory approvals, clearances, and compliances related to more than 30 organisations. This streamlined approach is crucial for existing industries, as they face challenges in directly dealing with 17 departments- the Punjab Industries & Commerce Department, Pollution Control Board, Chief Electrical Inspector, Labour Commissioner, Department of Factories, Department of Industries, Employment Generation and Training, Skill Development Mission, Punjab Bureau of Investment Promotion and Punjab State Industrial Development Corporation etc.
This complex web of multiple departments is directionless and unfocused; enormous human resources can be utilised in a single merged service provider entity. In 2012, the idea of merging The Punjab State Industrial Development Corporation (PSIDC) and Punjab Financial Corporation (PFC) into the Punjab Small Industries and Export Corporation (PSIEC) was also proposed but has yet to materialise.
Punjab, with 99.7 per cent of MSMEs, is a promising hub for growth. However, the most significant roadblock for these enterprises is dealing with multiple departments and keeping track of their compliance. Despite the implementation of ten policies since the first industrial policy was formulated in 1978, the need for actionable governance reforms is still pressing. It is necessary to explore various measures to significantly improve services and make Punjab an attractive destination. Policymakers must urgently re-imagine the state.Agriculture: In Punjab, agriculture is overseen by five distinct departments: the Department of Agriculture, Animal Husbandry, Dairy Development and Fisheries, Department of Horticulture, and Department of Soil & Water Conservation.
Eighteen additional organisations support these departments. Despite the involvement of multiple organisations, the state’s agricultural growth has consistently declined, resting at around three per cent from 1990 to 2000 and further declining to less than two per cent from 2010 onwards.Education: The government greatly emphasises education and considers it a top priority.
There is a critical need to revamp the administrative structure, as there are currently two separate departments, with six organisations and a school education board. The Department of Higher Education and Languages manages organisations in education and languages, while the Department of School Education oversees the six organisations. Despite these efforts, it is essential to address that Punjab’s secondary school dropout rate was 17.2% in 2022, exceeding the national average of 12.6%.The Way Forward: The reforms have the potential to significantly improve the functioning of key sectors in Punjab, creating a more accessible, transparent, efficient, responsive and accountable system to achieve a single goal collectively. Therefore two steps may be taken: First, Empowering Apex Officials: To achieve seamless collaboration among departments, empower at least five to six apex officers who will oversee the overall administration of their respective departments and have to report to the chief secretary. Each apex officer should have the support of five to six officers as direct reports.
This approach aims to improve responsiveness, ensure transparency in decision-making processes, and hold apex officials accountable for their actions. Second, Stakeholder Engagement: The active participation of stakeholders is not just important, it’s integral to the success of the proposed reforms. Encouraging stakeholder participation through feedback mechanisms and regular interactions to understand their needs and concerns is a key part of inclusive growth.
(The Author is Vice-Chairman of Sonalika ITL Group, Vice-Chairman(Cabinet minister rank) of the Punjab Economic Policy and Planning Board, Chairman of ASSOCHAM Northern Region Development Council and President of Tractor and Mechanization Association(TMA). Views expressed are personal)